Fix First Home › New York › NYSEG and RG&E heat pump and insulation rebates
NYSEG and RG&E heat pump and insulation rebates open
Administered by NYSEG and Rochester Gas and Electric (RG&E), under NYS Clean Heat.
NYSEG and RG&E pay the same: up to $12,000 for a whole-home air-source heat pump that replaces the old heating in a weatherized single-family home ($13,000 in a disadvantaged community), $7,000 otherwise, up to $20,000 for geothermal, $1,250 for a heat pump water heater, and up to $2,000 off insulation and air sealing.
source · verified 26 September 2026 · amounts in US dollars
What it pays
| Upgrade | Condition | Amount |
|---|---|---|
| Air-source heat pump, old heating removed | $7,000–$12,000 | |
| Air-source heat pump, old heating kept | $4,000–$8,000 | |
| Completing a partial heat pump system | $3,000 | |
| Geothermal heat pump, retrofit | $15,000–$20,000 | |
| Geothermal heat pump, new construction | $10,000 | |
| Heat pump water heater | Instant code at Lowe's and Home Depot, or after installation | $1,250 |
| Insulation and air sealing | Home Insulation and Air Sealing Program, instant | $2,000 |
| Project | Standard | Weatherized Tier |
|---|---|---|
| Air-source heat pump, old heating removed | $8,000 | $13,000 |
| Air-source heat pump, old heating kept | $5,000 | $9,000 |
| Geothermal, retrofit | $16,000 | $21,000 |
| Geothermal, new construction | $11,000 |
Apartments and homes under 1,000 sq ft get half. Rebates take four to six weeks.
Who is eligible
- who
- Homes of one to four units, owners or renters, with the utility's electric account. Existing homes; new construction gets geothermal and water heater incentives only.
- system
- A cold-climate heat pump system sized to heat the whole home (or whole apartments). Partial systems no longer qualify, except to complete one.
- contractor
- A NYS Clean Heat participating contractor, who applies for you and must pass the whole incentive on to you.
- cap
- Clean Heat incentives are limited to 70% of the project cost, or 85% for a project in a disadvantaged community getting the higher rate.
- electric customers
- NYSEG or RG&E electric, or combined gas and electric, customers replacing a furnace, boiler or water heater. Gas-only customers are not eligible for heat pumps.
- insulation
- Single-family homes (including townhouses with their own meters and mobile homes) and one- to four-unit buildings heated by natural gas, by heat pumps or electric resistance, or by oil or propane with some air conditioning.
The thing most pages get wrong
NYSEG's own heat pump page says up to $10,000 for an air-source heat pump and $18,000 for geothermal. Under the NYS Clean Heat manual in force since 1 September 2026, NYSEG and RG&E pay up to $12,000 and $20,000 in the Weatherized Tier, and $13,000 and $21,000 in a disadvantaged community.
The Weatherized Tier, new on 1 September 2026
NYS Clean Heat pays a higher rate when the home is already weatherized: it was built after 2010, it completed a qualifying insulation package (NYSERDA's Comfort Home or the utility's own), or the contractor shows its heating load per square foot is under the program's line. The contractor decides which tier applies, so ask before you sign. From 1 March 2028 weatherization becomes a condition of any Clean Heat incentive.
Sources
- https://www.nyseg.com/smartenergy/rebatesandprograms/nys-clean-heat-rebate-program — primary source, read 26 September 2026
- https://documents.dps.ny.gov/public/Common/ViewDoc.aspx?DocRefId=%7B100F5EA0-0000-CC28-AE78-E26712A9075D%7D
- https://www.nyseg.com/smartenergy/rebatesandprograms/insulation-air-sealing-rebates
- https://www.nyseg.com/residential-rebates-and-programs